Macroeconomic effects of the crisis caused by COVID-19: the case of Costa Rica

Abstract

Introduction: The COVID-19 pandemic represented a dis-
ruptive shock for the global economy, with particularly severe effects in small, open countries such as Costa Rica. Objective: To analyze the evolution of real GDP, aggregate demand components, and key macroprices between 2019 and 2023, considering the pre-pandemic period, the contraction period, and the recovery phase. Methodology: A descriptive analysis of official statistical series was conducted, complemented by a review of national and international institutional reports. Results: In 2020, the most critical year of the health crisis, real GDP contracted significantly, accompanied by declines in household consumption, investment, exports, and imports.
The only component that showed growth was public spending, with an increase of 0.8%, although insufficient to offset the
recession. The pandemic also impacted prices, interest rates, and the exchange rate, reflecting the external and internal shocks that characterized the period. Conclusions: The COVID-19 crisis had a clear recessionary nature in Costa Rica, the effects of which were amplified by structural vulnerabilities such as the fiscal deficit, growing public debt, and a high dependence on tourism.